Vinatex "sprints" to complete orders within 90 days of postponing corresponding tax

Vinatex strives to complete orders within 90 days of tax deferral. Photo: KG

News from Vietnam Textile and Garment Group (Vinatex) said As soon as the US announced the temporary suspension of reciprocal tariffs on April 10, customers urged textile and garment enterprises to speed up production and delivery, completing orders within the next 90 days.

Faced with market developments, Vinatex businesses have proactively developed short- and long-term response solutions, focusing on negotiating with customers in the spirit of sharing, seeking export markets, as well as new sources of raw materials, optimizing production management, speeding up production of orders signed in the second quarter...

Vinatex leaders said that the demand for textile and garment products in the US market may not decrease sharply because inventories have returned to low levels and there are expectations for more positive signals regarding tariff policies.

However, the industry also prepares for the case that Chinese textiles and garments are not exported to the US due to high taxes and will switch to other major markets, such as the EU, Japan, South Korea and even the domestic market of Vietnam.

According to Vinatex Chairman Le Tien Truong, market fluctuations and high tax rates are not new to Vietnam's textile industry.

Vinatex units have activated a close coordination mechanism like the Covid-19 pandemic period, while preparing for the worst market scenario.

The Vietnam Textile and Garment Trade Union launched the Workers' Month 2025 with the spirit of promoting labor and production, maximizing output, with 90 days of lightning-fast work. Units are making great efforts, determined to complete orders for the second quarter within 90 days (before July 5).

The Group also presides over the study of the supply chain of raw materials, prioritizes the use of fabric sources from enterprises within the Group system, supports enterprises in classifying each product and market to have a basis for negotiating with customers and finding suitable directions in the coming time.

The Group also focuses on transparency in rules of origin as well as compliance with regulations on anti-commercial fraud; orienting businesses to diversify products, supply chains, and expand markets to avoid dependence.

The Group maintains a series of regular weekly market seminars, updates news through various channels to grasp the situation and provide flexible direction.

In the first quarter of 2025, Vinatex's consolidated revenue is estimated at VND 4,417 billion, up 6.1% over the same period; consolidated profit is estimated at VND 271 billion, up 165.5% over the same period in 2024.

Most yarn units have orders until May 2025. However, since the last week of February 2025, the yarn market has decreased in both price and demand due to US-China trade tensions, while cotton prices have continuously dropped. Most yarn orders are tending to be finalized according to usage needs, requiring fast delivery, not buying for storage or inventory, and selling prices closely follow market fluctuations.

Meanwhile, many garment enterprises have received enough orders until the end of the second quarter of 2025 and are negotiating for the third quarter of 2025.

Source: https://hanoimoi.vn/vinatex-chay-nuoc-rut-hoan-tat-don-hang-trong-90-ngay-hoan-thue-doi-ung-698707.html